LEARNING EXERCISES EXERCISE 1: SOURCES OF CASH FLOWS Identify, under the appropriate heading, whether the following changes are an inflow of cash or an outflow of cash. What amounts and percentages were used by internal and external sources to finance the purchase of the assets? In S This Year Last Year Cash Inflows Cash Outflows House 134,600 130,000 Trailer 12,000 Furniture 5,600 4,000 Mortgage 75,000 60,000 RRSP 23,000 20,000 Loan made to a friend 5,000 Car loan 12,000 8,000 Visa 1,250 600 The Bay 450 Cash in the bank 3,000 2,000 Marketable securities 12,000 10,000 Total In % This Year Last Year Cash Inflows Cash Outflows House Trailer 134,600 130,000 12,000 Furniture 5,600 4,000 Mortgage 75,000 60,000 RRSP 23,000 20,000 Loan made to a friend 5,000 Car loan 12,000 8,000 Visa 1,250 600 The Bay 450 Cash in the bank 3,000 2,000 Marketable securities 12,000 10,000 Total 100.0 100.0 Note: Salary in excess of expenses is not a statement of cash flows account.